[Glossary] Technical Analysis & Charting Terms

CryptoKas

Below is a detailed glossary of terms you’ll encounter in Technical Analysis & Charting discussions. Definitions are clear and concise—ideal for traders refining their charting skills.

Chart Types & Basics

Line Chart: Connects closing prices with a line—simple view of price over time.
Bar Chart: Shows open, high, low and close (OHLC) in a vertical bar—more detail than a line.
Candlestick Chart: Uses “candles” with bodies and wicks to display OHLC; colors indicate up (bull) or down (bear) sessions.
Heikin-Ashi: A variant of candlesticks that averages price data to filter noise and highlight trend direction.
Volume Bars: Histogram at the bottom of a chart showing how many coins traded in each time period.

Trend Tools

Trendline: Straight line drawn along swing highs or lows to show the general direction of price.
Channels: Parallel trendlines above and below price that define a rising, falling, or sideways “channel.”
Moving Average (MA): Average price over a set period that smooths data.
- SMA (Simple MA): Arithmetic mean of closing prices.
- EMA (Exponential MA): Puts more weight on recent prices, reacting faster to changes.
Golden Cross / Death Cross: When a short-term MA (e.g. 50-day) crosses above (golden) or below (death) a long-term MA (e.g. 200-day), signaling potential trend shifts.
VWAP (Volume-Weighted Average Price): Average price weighted by volume—often used by intraday traders to gauge fair value.

Support & Resistance

Support: Price level where buying interest tends to step in, preventing further declines.
Resistance: Price level where selling interest tends to cap gains.
Pivot Points: Calculated levels (usually from the previous day’s OHLC) used to predict support/resistance for the current session.
Fibonacci Retracement: Horizontal lines at key ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) drawn between a high and low to identify potential pullback levels.

Chart Patterns

Head & Shoulders: A top formation with a peak (head) between two lower peaks (shoulders)—often signals trend reversal.
Inverse Head & Shoulders: The mirror image, indicating a bullish reversal at market bottoms.
Double Top / Double Bottom: Two peaks or troughs at the same level—reversal patterns.
Triangles:
- Ascending (flat top + rising floor): breakout usually bullish.
- Descending (flat floor + falling ceiling): breakout usually bearish.
- Symmetrical (converging trendlines): breakout direction ambiguous.
Flags & Pennants: Short consolidation patterns after a sharp move (“flagpole”), signaling continuation.
Rectangles: Price bounces between parallel support and resistance—can break either way.
Gaps: Empty spaces on a chart where price jumps without trading—common in low-liquidity or overnight moves.

Indicators & Oscillators

Relative Strength Index (RSI): Measures momentum on a scale of 0–100; readings above 70 often indicate overbought, below 30 oversold.
MACD (Moving Average Convergence Divergence): Shows relationship between two EMAs (e.g. 12 & 26); histogram highlights momentum shifts.
Bollinger Bands: Envelope around an MA set ±2 standard deviations; bands contract in low volatility and expand in high volatility.
Stochastic Oscillator: Compares current close to a range of prices over a period; readings above 80 overbought, below 20 oversold.
ATR (Average True Range): Measures market volatility by averaging the true range (high–low or current close vs. prior close).
OBV (On-Balance Volume): Cumulative volume indicator that adds volume on up days and subtracts on down days to gauge buying/selling pressure.
CCI (Commodity Channel Index): Measures deviation from a simple MA; identifies cyclical trends.

Advanced Tools

Ichimoku Cloud: A suite of five lines that define support/resistance, trend direction, and momentum in one view.
Volume Profile: Displays traded volume at each price level—identifies high-activity “nodes” that act as magnets or barriers.
Divergence: When price makes a new high/low but an indicator (RSI, MACD) does not—often precedes reversals.
Pitchfork: Three parallel trendlines based on three points (start, high, low) projecting potential support/resistance.
Renko & Point & Figure Charts: Alternative chart types that filter price action to focus on clear moves, ignoring time intervals.

Feel free to pin this thread and refer back anytime you’re charting. If there are terms we missed or you want deeper examples, drop a comment below!